Asset Allocation, Not Fund Details, Is Your Most Consequential Investment Decision

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Adam M. Grossman argues that how you divide your money between stocks, bonds, and cash — your asset allocation — is almost always the single most important factor driving your investment risk and return, yet most day-to-day financial commentary focuses on minor details like small differences in fund expenses or bond yields. He also warns against treating popular rules of thumb, such as setting your bond percentage equal to your age, as hard rules: everyone's financial situation is different, and your allocation should reflect your own circumstances rather than a generic formula.